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Sunday,
December 29, 2002, Chandigarh, India 
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Forex
reserves cross $ 69 bn Ratan Tata
steps down
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Proposals
to cut tax burden In the
wonderland of investment
Safer
fuel system evolved
First
hearing
PNB
farmers institute in Jind
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Forex reserves cross $ 69 bn
Mumbai, December 28 The country’s foreign exchange reserves jumped from $ 68,435 million to $ 69,508 million in the period, according to the RBI weekly statistical supplement here today. The foreign exchange reserves for the first time in the fiscal rose by over $ 1 billion in a week. They had seen a rise of $ 896 million, $ 828 million, $ 817 million and $ 755 million during the week ended June 28, December 6, July 19 and November 8. The RBI said the foreign currency assets witnessed a massive upsurge of $ 1,073 million at $ 66,198 million during the week ended December 20. Gold and special drawing rights remained unchanged at $ 3,303 million and $ 7 million. Loans and advances to the Central government decreased by Rs 1,625 crore to register a nil balance while that to state governments increased by Rs 1,147 crore to Rs 7,891 crore. Aggregate deposits of scheduled commercial banks for the fortnight ended December 13 rose by Rs 653 crore (0.1 per cent) at Rs 12,55,795 crore. Bank credit increased to Rs 684,042 crore, up by Rs 1,652 crore (0.2 per cent).
PTI
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Ratan Tata steps down
Mumbai, December 28 Mr Tata will remain the non-executive Chairman for five more years till the age of 70 and during the period, a successor will be identified, sources in the Tata group said. The most high-profile CEO of the country’s prominent industrial group, Mr Tata as a non-executive Chairman, will not draw any honorarium from the company, the sources added. Mr Tata, till yesterday, was the Executive Chairman of the group-holding company Tata Sons. He is the non-executive Chairman of other group majors such as Telco, Tisco, Indian Hotels and Tata Chemicals. At the Tata Power’s AGM here on August 6, Mr Tata disclosed that the retirement age of non-executive Directors was intended to be reduced to 70 from 75. In early April, 1992, Tata Sons’ Board had decided to set the retirement age for whole-time directors at 65. Mr Tata became the Chairman of the Tata group of companies in 1991. The acquisition of Videsh Sanchar Nigam Ltd (VSNL), the Tetley group and CMC Ltd by the Tata group were the landmark achievements by the company under his chairmanship.
UNI
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Proposals to cut tax burden
New Delhi, December 28 Quoting official estimates, Mr Kelkar said a salaried person earning Rs 80,000 to Rs 1 lakh would pay Rs 1,224 less as income tax, while a person earning above Rs 10 lakh would pay Rs 69,597 less. The relief to the non-salaried tax payers ranges from Rs 382 for an income of Rs 50,000-60,000 to Rs 82,946 for persons earning above Rs 10 lakh, he said. For senior citizens, Mr Kelkar said the benefit ranged from Rs 3,402 for the income bracket of Rs 1.5-2 lakh to Rs 77,196 for income above Rs 10 lakh. The panel has suggested doubling of the income tax exemption limit to Rs 1 lakh and a two-slab personal income tax structure of 20 per cent for income of Rs 1-4 lakh and 30 per cent for income beyond Rs 4 lakh. It has also raised the income tax exemption limit to Rs 1.5 lakh for senior citizens and widows.
PTI
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In the wonderland of investment Q:
1. My in-laws would like to gift two LIC policies — one to me (service) and another to my wife (housewife having no PAN or filing IT File). What would be the tax treatment on the maturity value of the policies (maturity after 10/15 years)? 2. If after, say 3 yrs, I pay the annual premium of the policies from my income, then — i). whether I could take rebate U/Sec 88 for the premium paid. ii) what would be the tax treatment on the maturity value of the policies? 3. They have given us two tax-free relief bond certificates — one to me and another to my wife. One KVP to me and one to my wife. What would be the tax treatment and how would I declare the same in my Return? 4. I have been inherited from my father one residential house and another plot of land in an urban area; and some agriculture lands in the rural areas. Whether all these would have to be declared under the Wealth Tax section while filing my return to the tax authority every year? 5. My mother would like to gift one LIC policy (one time premium payment) to my daughter (minor) from the maturity amount of some KVPs of my late father. What would be tax treatment? S. Patra. Ans: When a policy is assigned without valuable consideration and the donor continues to pay
premiums afterwards, does it constitute a gift? The answer is — No. The reason is simple. If the donor stops paying premiums after sometime, the donee will get a much smaller amount than the total amount of premiums put together. There is a possibility that the surrender value of the policy could be nil! 1. The maturity proceeds are in the hands of your wife and you will be tax free. I presume it is a policy whose maturity value is tax free. 2. I am afraid, there is some confusion in your mind. When the policy is gifted (assigned) to you, it continues to stand in the name of the original policy holder. If he continues to pay the premium, he can claim rebate u/s 88. Not you. 3. The maturity proceeds and/or interest of relief bonds will be tax free in your hands. However, proper procedure will have to be followed. Investors have a choice between two forms of the bonds, viz. ‘stock certificate’ or ‘promissory note’ stock certificate can be transferred only by registering the transfer with the RBI. Promissory note can be transferred by endorsement of holder. Unlike in the case of share transfers, no stamp duty is required. I hope the in-laws have purchased stock certificate. Even otherwise, get the bonds transferred in your name. KVPs are not transferable from one person to another. These can be transferred only after taking special permission of the post master and only to near relatives which mean lineal ascendants or descendant or brothers and sisters. You will have to wait till maturity and get gift in cash. Q:
As per the Finance Minister’s announcement, u/s 88 the limit was raised to Rs 100,000. Out of this Rs 70,000 could be contributed under PPF a/c. However, the banks are allowing contribution of only upto Rs 60,000. Please confirm the confirm the correct position. A.K. Bose Ans: The PPF rules allowed only Rs 60,000 to be contributed to PPF during any Financial Year. The ceiling on contribution to various avenues u/s 88 was raised to Rs 1 lakh (from Rs 80,000) out of which Rs 30,000 was exclusively marked for Infrastructure bonds (raised from Rs 20,000). The ceiling of contribution to PPF which was Rs 60,000 was not changed. Ever since then, I had been praying for the ceiling of PPF to be raised to Rs 70,000 in consonance with the raised ceiling of Sec. 88. Finally, Notification GSR768(E) on November 15, 02 raised the ceiling of PPF to Rs 70,000, with immediate effect.
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rc
by K.R. Wadhwaney Safer fuel system evolved The Federal Aviation Administration (FAA) of the USA functions with greater planning when the country is in a tough situation. When a Trans-World Airways plane crashed off the coast of Long Beach (New York) on July 17, 1996, killing all 230 persons aboard, the FAA evolved a safer fuel system to check such accidents. Scientists believe it is a good system, but airline officials feel it will be beyond the reach of many airlines to retrofit their planes with the equipment necessary to pump non-flammable nitrogen into fuel tanks. It will take at least two years before the new system becomes operational. If the safer fuel is uplifted, it will lead to a considerable increase in fares. The aviation experts are of the view that safety measures should be enforced regardless of the cost involved. The US Airways Group, facing bankruptcy, has ratified an agreement in cost-cutting measures to help keep the airline afloat. The pilots union has consented to cost cutting measures, including cuts in pay, pension and other benefits.
Air routes revised Several air routes have been revised, providing wider corridors to global pilots. The new routes have shortened the distances, helping airlines to save fuel and time. The International Civil Aviation Organisation (ICAO), Asian-Pacific Region, has revised the route structure between New Zealand and Europe transmitting the Indian air space.
New flights Qatar Airways is spreading its wings. The airline will operate three additional flights from March, 2003. Qatar Airways officials plan to bid for investment in one of the four metro airports that are being privatized. With the operation of three new flights, Qatar Airways’ capacity will cross 3,500. Lufthansa will operate three additional flights from Bangalore to Frankfurt from January 15. It will operate another three flights on a permanent basis from Chennai. |
ty
Driving in The grapevine has it that the nation’s best known car manufacturer is well and truly in the UPO mode now and there is also a buzz of the face value of the share being lowered to reduce the offer price so that there is more retail participation. Watch this space.
Coloured reaction The roll out of yet another vehicle mid-size car by a leading private sector group at a fairly aggressive price might just backfire, if the grapevine is to be believed. The general feel is that this is an invitation price to test the car and a fine-tuned model will be re-launched within a year at closer to market price.
Banking buzz The spectacular debut of Canara Bank at the bourses has further whetted the appetite for banking stocks among retail investors. Institutional investors though are reportedly making a beeline for the Andhra Bank stock. What’s cooking ?
Budget whispers The latest buzz on the street is that the results of an unofficial poll on the impact of a withdrawal of tax sops on the housing sector has led the Finance Ministry in no doubt that the Kelkar Committee recommendations there on should not be touched with a barge pole, at least not with an election round the corner !
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sti
by Praful R. Desai First hearing Q:
Whether the tenant paid the rent at the first hearing within the meaning of S. 20 (4) of U.P. Rent Act? Ans: The S.C. in Ashok Kumar v Rishi Ram [2002 (2) RCJ 96] was considering this point. In this case, the suit was posted on 20.5.80 for final disposal but that date cannot be treated as the first hearing of the suit as the Court granted time till 25.7.80 to the tenant for filing written statement. On 25.7.80, time was extended for filing written statement and the suit was adjourned for final disposal to 10.10.80. Admittedly, on that date the applicant-tenant deposited all the arrears of rent. Though the suit was again adjourned to 5.12.80, it would be irrelevant because the date of first hearing of the suit is the date when the court proposes to apply its mind and not the date when it actually applies its mind. It follows that the first hearing of the suit would not change on every adjournment of the suit for final disposal. The effective date of the first hearing of the suit on which the Court proposed to apply its mind, on the facts of the case, was 10.10.80, as stated above. The amount of arrears of rent having been paid on that date, there is compliance of S. 20 (4) of the U.P. Rent Act, so the tenant is entitled to the benefit of the said provision. In the view of the matter, the S.C. held that it was unable to sustain the order under challenge. The impugned order of the H.C. upholding the order of the IV Add. Dist. Judge which confirmed the order of the trial court, is set aside. The suit of the respondents-landlords shall stand dismissed and thus the S.C. allowed the appeal.
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Kelkar panel IBM awards Proposals flayed Nominated Gold, silver up Industrialist dead |
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